In Swissquote’s Thursday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for GBP/USD and AUD/USD. To view and download the entire report, click here (PDF).
GBP/USD: Pausing near the support at 1.6162
• GBP/USD continues to retrace the rebound that started from the low at 1.6052. The hourly support at 1.6162 (16/09/2014 low) has held thus far. However, a break of the hourly resistance at 1.6287 is needed to invalidate the short-term bearish momentum.
• In the longer term, the collapse in prices after having reached 4-year highs has created a strong resistance at 1.7192, which is unlikely to be broken in the coming months. We favour a medium-term consolidation phase with supports at 1.6052 and 1.5855 (12/11/2013 low) and a resistance at 1.6644.
AUD/USD: Successful test thus far of the strong support at 0.8660
• AUD/USD has thus far successfully tested the strong support at 0.8660. Hourly resistances can be found at 0.8826 (intraday high) and 0.8950 (22/09/2014 high).
• In the long-term, the underlying trend is negative. The impulsive decline from the lower high at 0.9505 (01/07/2014 high) does not suggest that the end of this downtrend is near. Monitor the test of the strong support at 0.8660 (24/01/2014 low). A key resistance stands at 0.9112 (16/09/2014 high). Another strong support lies at 0.8067 (25/05/2010 low).
